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Same Article I Posted on SH - TUOPretty good beating of the mule of gold arguments by John Hathaway at Sprott, he says a number of things I agree with, oddly enough one of the most convincing isn’t really much of a technical argument at all: it is the late Richard Russell’s advice that the longest and biggest bull markets have the most time and ability to throw off as many investors as possible - or carry the least number up through to the final blow-off mania. Russell, who loved the markets, studied the movement of equities every day for almost 70 years from a Dow theory perspective, took the view that all paper assets would always eventually be rendered worthless by overvaluation or overleverage, and the fundamental investment approach should be: use compounding yield to build your capital over the long term, trade long secular markets to get your yields in stocks and bonds at preferred cost, and start to allocate a portion of returns to gold, both equities for leverage, but also smaller denomination bullion for protection from crisis impairment of all paper and regulated markets when the proverbial hits the fan. I read him every day for about 15 years and before that would read his paper newsletter at my Dad’s house on Sunday afternoons once a month .. for another 20 years or so before the internet. He flew bombers over Italy in WW2 - which was hella scary stuff - greatest generation guy - brash NY kid who ended up doing pretty well in sunny La Jolla. This is a pretty good summation of the current state of the bullish gold argument, especially to me the direction of the US dollar as portfolio insurance (bond market in particular, treasuries, plain old cash). As the dollar depreciates, if it does, where else is there to run and hide? https://sprott.com/insights/sprott-gold-report-gold-the-simple-math/?utm_source=insights&utm_medium=email&utm_campaign=sprott-gold-report-gold-the-simple-math&_cldee=Y291bnRyeWdlbnQzOUBnbWFpbC5jb20=&recipientid=lead-9d42670633f9ea11a815000d3a0c86a9-8578a6fdbd7841cbb8ee4319dc215038&utm_source=ClickDimensions&utm_medium=email&utm_campaign=EMAIL: Gold's Breather Creates Buying Opportunity&esid=191ba9fe-490e-eb11-a813-000d3a0c94a6# While it may be exciting to think of the gold possibilities the whole play is a short play on happy, prosperous times, which is not what any sane person except for evil pricks like the Koch and Trump families would seem to want - the “I’m all right, Jack” attitude. As a footnote, that didn’t work out too well for a lot of people, regardless of wealth, from 1914-1918 and 1939-1945. Can’t happen again? I wouldn’t count on that. Only this time expect some much bigger explosions and body counts. On the other hand, if you have only another 30 or so years to live, you can probably duck out before things get really vicious. Cheers! cg PS try that link again ... https://sprott.com/insights/sprott-gold-report-gold-the-simple-math/?utm_source=insights&utm_medium=email&utm_campaign=sprott-gold-report-gold-the-simple-math&_cldee=Y291bnRyeWdlbnQzOUBnbWFpbC5jb20=&recipientid=lead-9d42670633f9ea11a815000d3a0c86a9-8578a6fdbd7841cbb8ee4319dc215038&utm_source=ClickDimensions&utm_medium=email&utm_campaign=EMAIL: Gold's Breather Creates Buying Opportunity&esid=191ba9fe-490e-eb11-a813-000d3a0c94a6# |
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